Hot market – Nov. 10, 2008
It looks like the chances for stock indexes to form a W bottom off the October and November lows are fading fast as they continue to tumble away from the interim highs (9654 for the Dow Jones Industrial Average and just above 1,000 for the E-mini S&P 500) that must be exceeded to mark a bottom and toward the October lows (7882 for the Dow and 825 for the E-mini). The business news doesn’t provide any help.
- Employment numbers released last Friday indicate that consumers will be hard-pressed to spark an economic recovery as fewer have jobs.
- Several more banks and retailer CircuitCity filed for bankruptcy over the weekend.
- U.S. auto makers may not be far behind as they say they may not be able to make it into 2009 without funding from the government, which has already expended billions of dollars in its massive bailout program.
- Although a few investors like Warren Buffett are saying it’s time to buy stocks, the market has not seen the capitulation yet that is necessary for a true bottom, many analysts contend.
For many investors, stocks are indeed “hot” – that is, toxic material that they are not eager to touch yet.